Car registrations rise 28% in July, marking a year of sales growth.

author: FutureCar Staff    

The new car market has experienced a year of growth, with registrations increasing in July. According to the Society of Motor Manufacturers and Traders (SMMT), new car registrations were up by 28.3% compared to the same month last year. This marks the 12th consecutive monthly year-on-year increase, indicating continuous growth. Car manufacturers have benefited from improving component supply chains, contributing to this positive trend. July 2021 saw the best performance since 2020 when dealers reopened after lockdown.

The growth in registrations was primarily driven by company and business registrations. Large fleet uptake increased by 61.9%, reaching 80,961 units, while business registrations rose by 28.7% to 2,915 new vehicles. Private demand remained stable, with a slight increase of 0.3% to 60,045 units. The Ford Puma was the best-selling car in July and continues to be the most popular car this year.

Electrified cars, including hybrids, plug-in hybrids, and battery electric vehicles (BEVs), accounted for 35.4% of the market. BEVs experienced the largest gain, with a year-on-year increase of 87.9%. They represented 16% of all registrations in July. The SMMT reported that a new BEV was registered every 60 seconds in July, and this figure is expected to decrease to every 50 seconds by the end of the year and every 40 seconds by the end of 2024. The SMMT predicts that by 2024, BEVs will make up 23% of all registrations.

The SMMT emphasized the importance of providing support to consumers switching to electric cars. They called for fiscal incentives and reassurance to facilitate this transition. The organization also highlighted positive signs in the last quarter, with a record high of 3,056 new standard public chargers installed. This equates to one new charger for every 35 new cars fitted with a plug, compared to one charger for every 53 new cars in the same quarter last year.

In terms of sales, the Ford Puma topped the charts in July with 4,124 registrations. It was followed by the Kia Sportage, Nissan Qashqai, Vauxhall Mokka, and Hyundai Tucson. The Ford Puma also maintained its position as the top-selling car in the year-to-date chart. Vauxhall's Corsa and the Nissan Qashqai secured second and third place, respectively.

Industry experts shared their perspectives on the figures. SMMT chief Mike Hawes expressed the industry's commitment to meeting the UK's zero-emission deadlines and emphasized the need for incentives to encourage electric vehicle adoption. Auto Trader's commercial director, Ian Plummer, noted that consumer interest in EVs was flat in July, potentially influenced by recent headlines regarding the 2030 ban. What Car? editor Steve Huntingford observed lower consumer demand for new EVs among private buyers due to rising living costs and concerns about range and charging availability. KPMG's head of UK automotive, Richard Peberdy, highlighted that some consumers are "trading down" brands due to higher costs, but overall consumer car sales have increased, particularly for electric and hybrid vehicles.

Looking ahead, the introduction of London's Ultra Low Emission Zone and similar schemes in other UK cities may impact new registrations. Close Brothers Motor Finance's director of sales, Lisa Watson, suggested that these schemes could make a new vehicle purchase a necessity. Mark Oakley, director of AA Cars, highlighted the increase in sales as a reflection of the rebound in UK car production, which has seen five consecutive months of growth. Oakley also noted that falling prices for used EVs may encourage more drivers to consider second-hand electric vehicles.

This story was first published at 07:31 on August 4 and was updated at 09:30.

FutureCar Staff